While some blockchain projects have gotten support and coverage from the general public, many others are still mostly unheard of. One such instance of a relatively unknown blockchain initiative is Helium, which aims to revolutionize the way we use wireless internet and cellular data. Helium, also known as “the people’s network,” has the ability to integrate blockchain, wireless networks, and the Internet of Things – IoT together into a single, all-encompassing initiative. In the meanwhile, mining Helium has allowed many cryptocurrency investors to generate passive income. Here are the essential facts on helium blockchain technology, how it is all revolutionizing wireless connectivity, and how to use it.
The Helium Network: What Is It?
The helium network is a blockchain based cryptocurrency that aims to build a decentralized wireless network. The cryptocurrency does not depend on satellite infrastructure or cellular networks. With Helium, anyone can own and manage a wireless Internet of Things (IoT) network that uses a special, portable radio router called a hotspot.
The word “Miners” refers to users who utilize Hotspots as a way to offer IoT coverage. Helium miners give coverage in exchange for Helium tokens, as opposed to other blockchain systems like Bitcoin where miners employ computational power (HNT). The wireless network gets stronger as more individuals join in the mining of helium.
In theory, this would enable wireless access for users without relying on a centralized system. Network infrastructure has historically been a very monopolized sector of the economy. It would also make the Helium infrastructure a cost-effective choice for internet access, particularly in low-data regions where WiFi is unavailable and mobile data would be prohibitively expensive.
A Helium Hotspot: What Is It?
The Helium hotspot is just a wireless router-like plug-and-play gadget that miners purchase in order to receive mining incentives. People use hotspot devices, which serve as nodes, to encourage them to contribute to the construction of this decentralized wireless network. Then, while also collecting HNT tokens, they link neighboring IoT devices.
According to Helium, their hotspot can maintain connection 200 times further than conventional WiFi. That’s a result of LongFi, a new wireless innovation from Helium. The established LoRaWAN wireless protocol and Helium’s proprietary blockchain are combined in LongFi by Helium.
Helium does not have any of the limitations imposed by a centralized cellular operator, such as data constraints or overage fees, in contrast to conventional WiFi routers. Currently helium miner in UAE is receiving an increase in popularity due to being energy efficient. Additionally, additional purchases like SIM cards are not necessary for Helium hotspots. Moreover, they are always fully encrypted.
Evidence-Based Consensus
Helium, in contrast to other blockchain projects, has a unique consensus method called Proof-of-Coverage (PoC). In a PoC network, an algorithm examines users’ coverage on a regular basis and pays those who can attest to it.
At times random tests are performed on the hotspots as a way to determine whether PoC consensus are actually delivering coverage. There is no definite way of determining when these tests take place as they are random and automatic. In the case that the operator passes the test, there hotspot receives a number of pre-determined HNT tokens as reward, or in other words simply known as helium mining.
The different aspects of mining can be categorized as Challengers, transmitters, and witnesses in a system’s PoC challenge mechanism.
- A challenger is any hotspot that challenges another
- The objective of the challenge is the one who issued it or the challenge.
- Witness hotspots are those that are physically close to the transmitter. It is their function to provide confirmation on completion of proof of concept challenge.
What Is the HNT Token for Helium?
The native cryptocurrency utilized in the Helium ecosystem is the HNT coin. Hotspots that provide coverage are rewarded with tokens based on the amount of data they handle and the number of additional hotspots that are around the user’s location.
Only 223 million HNT tokens will ever be produced. In that regard, HNT and other cryptocurrencies like Bitcoin have comparable structures. All 223 million tokens would be produced in accordance with HNT’s halving plan in the next 50 years.
The allocation of HNT tokens for rewarding information relaying devices to the internet amounts to about 30% of the total supply. For taking part in PoC challenges, participants receive an additional 35% of HNT tokens. The management, founders, and investors of Helium receive the remaining 35% as a return.
Data Credits for Helium
Data credits are another non-tradable coin kind employed by Helium. Every data credit is worth US$0.00001; hence, US$1 of HNT will yield $100,000 in data credits. On the Helium network, data credits are required to send a single byte of data. They are connected to each user and are not exchangeable.
How Does Helium Mining Work?
As opposed to standard cryptocurrency mining, which relies on powerful gear such as ASICS or GPUs, helium mining uses radio wave technology which results in using a reduced amount of energy.
It is necessary that a hotspot passes Proof of Concept challenges and earns payout tokens as prerequisites for mining helium tokens. In addition, it depends on the vicinity of other hotspots and traffic at a user’s hotspot dictates the number of tokens that a user earns. With additional competition to a user, the lesser the earnings will be. Simultaneously, a rural area will have less competition but will also have less traffic.
How Can You Become A Helium Miner?
Anyone who makes the initial investment in buying a Helium hotspot out of a third-party source can start mining helium. The variations in performance between different miners is minimal. Achievement as a Helium miner is largely influenced by a user’s surroundings and rivals.
Its capacity to carry data is also influenced by other elements, such as where they position its antenna and whether it puts its hotspot close to a window. In most cases the hotspot is active for up to 10 meters but it depends on the miner that the user is using.
What users need to understand is that with the increase in hotspots in close proximity, the hotspots will get less economical. While also the network itself will become the preferred mode of data transmission.
Helium is a young sufficient project where anyone can still make a respectable side income just by setting up a Hubspot, unlike mining Bitcoin, which is now far less rewarding for the typical user. Additionally, Helium provides customers with the Helium Explorer app, which enables them to view the network coverage in specific areas.
Summary
One of the more ambitious and instantly useful blockchain projects out today is Helium. It is a decentralized wireless technology that isn’t run by a major carrier and is made feasible by the thousands of small hotspots that participate in it.
It’s possible that Helium will replace wireless data in the same way that the internet replaced cellular data and Wi-Fi because it promises to be substantially less expensive.
By market cap, Helium is the 52nd biggest cryptocurrency project, valued at about US$3.6 billion as of late April 2022. If its network gains greater traction, Helium has a great deal of potential compared to the nine- and ten-figure valuation of the biggest cryptocurrencies in the world. In contrast to many other coins, it is a network that most people may find immediately useful and usable.
